« 'U.S. Paychecks Grow at Record-Slow Pace' | Main | Paul Romer: Freshwater Feedback on Mathiness »

Friday, July 31, 2015

Pictures of Austerity

Brendan Mochoruk and Louise Sheiner of the Brookings Institution say that Fiscal Headwinds are Abating:

Tight fiscal policy by local, state, and federal governments held down economic growth for more than four years, but that restraint finally appears to be over...

This is a pretty good summary of the charts:

Fiscal policy is no longer a source of contraction for the economy, but neither is it a source of strength.

But in my view the statement "neither is it a source of strength" understates how poorly fiscal policy has been managed. The strong headwinds never should have been there to begin with, and we have yet to feel the wind at our backs:

Fiscalimpact1

Monthly-employment-change

State-spending

Monthly-federal-emplyment

    Posted by on Friday, July 31, 2015 at 11:33 AM in Economics, Fiscal Policy | Permalink  Comments (16)


    Comments

    Feed You can follow this conversation by subscribing to the comment feed for this post.

    -->